LPG bottling plants, a solution to high-risk dispensing stations - a reaction
We do not intend to engage any faceless group in any paper war. The truth of the matter is that attempts at subverting the operations of the LPG dispensing stations in the country and kicking indigenous Ghanaian businesses from the LPG industry started in earnest some time ago with attempts to introduce the following policies among others:
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- Facing out all LPG Trucks that are more than 10 years old from the system.
- That no company can operate as an LPG company if it has not more than 10 LPG trucks.
The introduction of cylinder circulation module to replace the existing dispensing stations with no policy in place to at least fully compensate the existing players who have invested very heavily in the LPG industry over the years.
Therefore, the article in the Daily Graphic of Wednesday, January 15, 2017 under the banner headline – Liquefied Petroleum Gas Bottling Plants – A solution to high-risk Dispensing Stations – is obviously no news to us.
It may be relevant to indicate that even before any consideration was given to item (I) above, the LPG environment suddenly saw the emergence of more than 100 brand new trucks into the system.
However, items (II) & (III) could not be implemented as the Ghana National Petroleum Tanker Drivers Union, for example, stood their guns and threatened strike action if any attempt was made to implement them. So, that has been the needless threatening terrain the LPG Industry has over the last four years been subjected to.
The writer, Isaac Simpson, who describes himself as Health and Safety Practitioner, woefully betrayed himself and pathetically exposed his masters when he stated as follows: “This arrangement will require the setting up of LPG bottling plants. An oil marketing company is already constructing such facility which may come into operation very soon.”
Clearly, the writer is not after safety in the LPG Industry as he would want the public to believe but has unknowingly exposed himself as the PRO of that Cylinder Circulation Company, obviously for a private beneficial gain.
Mr Simpson is obviously not aware that following a stakeholders’ workshop held at the Alisa Hotel on September 20, 2016, organised by the Petroleum Ministry, it was agreed that a new committee of all Stakeholders be set up to immediately review the Petroleum Draft Proposal on LPG.
Again, under the Petroleum (Exploration and Production) Law 2016, Act 919, the main principle is that management of petroleum resources should be conducted in accordance with the principles of good governance and transparency for the maximum benefit of Ghanaians (emphasis ours). However Mr Simpson thinks and writes otherwise for purposes only known to him.
We are not against any company entering the petroleum Industry under any guises but we think open competition, and not mischievous practices and writings designed to disable any sector of the Petroleum Industry, should be the guiding principle.
Mr Simpson proposes LPG Dispensers on Petrol Station platform, like it happens in Europe. Can he imagine what would have happened at the Adabraka Circle Total Filling station if there was an LPG Dispenser also on the platform during the fire outbreak about two years ago?
The irony and the sad part of Mr Simpson’s proposal is that some of our sister African Countries such as Nigeria which were operating a semblance of the Cylinder re-circulations module are now switching to the Ghana module, as the latter has proved more efficient, with LPG more available within communities and has significantly promoted indigenous managers of their own businesses, (Local Content) instead of permanently being blue collar workers as pertains in Kenya.
Over there, LPG distribution is controlled by only three foreign companies under the cylinder re-circulation module, forcibly pushing the citizens to buy only from the company which supplied the cylinders.
To conclude, we want to fully support the position that all laws/regulations/policies that have the potential and potency of throwing indigenous local businessmen out of business must be expunged as they are discriminatory and inconsistent with government’s Local Content Policy.
This rejoinder is signed by the following bodies:
LPG Marketing Companies Association of Ghana.
Ghana LPG Operators Association (GLiPGOA).
LPG Tanker Owners Association of Ghana.
LPG Tanker Drivers Union of Ghana.
